Skyrocketing housing costs in Berlin can’t be blamed on an influx of ‘foreigners’, but are in fact fuelled by the global financial crisis

I recently moved back to Berlin after four years in London, and it seems half of London had the same idea. When I walk down the familiar streets of my old neighbourhood, where the most exotic sight used to be the local kebab shop, I now hear posh kids from the home counties discuss their nightly exploits and see stylish Swedes sipping espressos. It all suddenly feels like Dalston. Read the rest of this entry »

German aversion to the ECB printing money isn’t about the ‘national psyche’

To understand German fiscal policy, it is necessary to look beyond the cod psychology about a fear of 1920s hyperinflation

Over the last few months, during all the hand-wringing and arm-twisting at the multiple summits to save the euro, one question seemed to unite the quarrelling nations: what’s wrong with the Germans? Specifically, there has been some bafflement as to why Angela Merkel is so squarely opposed to a more active role of the European Central Bank. Why won’t Germany agree to the ECB buying up Greek or Italian bonds? Read the rest of this entry »